Gazumped.

Martin_OB

I have learnt so much from this website and this forum - but if anyone of you could tell me how I can make this situation better, I would be eternally grateful.

Yesterday, my girlfriend and I went to view a property. The vendor had told us that if we could agree a price, they would take it off the market immediately. We told them that while we were in a position to act swiftly (mortgage arranged, solicitor ready to roll), we could not agree to bid for a property - at least without a few hours consulation.

We viewed the property at 2pm, but hastily arranged another viewing at 7pm. Our parents gave us their blessing, they went off to the pub - and we were left to talk offers. The vendors had offered it to us for £144k, they had refused an offer of £140k - so we decided to meet in the middle and bid £142k.

The bid was accepted, provided we could exchange on 3 November and complete on 10 November. We agreed and shook on the deal. They also vowed to take the property off the market immediately. Two viewings were scheduled for today - and the vendors told us that they would refuse entry, as they had accepted our offer.

At 12 noon today, I went into the Estate Agents to formally put in our offer. Using Andrew Smith's model, I submitted the following to the Estate Agent.

"We have decided that xxx is the property we wish to purchase. We have our funds in place with a mortgage agreed in principle. We are also in a position to instruct a solicitor first thing tomorrow morning (Monday 18 September 2006) upon the offer being accepted.

We are in an excellent position as we are first-time buyers. We wish to offer £142,000, subject to survey, contract and the following conditions.

*All future and current viewings are cancelled
*The property is withdrawn from the open market immediately and we have exclusivity over it
*The ‘For Sale’ sign is removed within 48 hours and the property is also no longer listed either in the press or on the internet
*We receive weekly updates on the progress of the sale

We agree to the vendor’s request to have contracts exchanged on Friday 3 November 2006, with a completion date of Friday 10 November 2006."

The offer was accepted on the telephone, I went home as delighted as I had been on the previous evening...and all was well.

At 3pm today, the vendor called me back to inform me that they received a bid of £145k for the property. She is at present 'considering her options'. She told me that while the £3k 'would come in handy for her new home', she realises that she did give us her word.

That is the galling factor - when we left the house last night, the property was off the market. The deal was agreed. Now we are left with the prospect of nothing.

The vendor told me that the Estate Agent will call us tomorrow to inform us of her decision. My gut feeling is that she will go for the higher offer - and leave us high and dry. It's so galling - especially considering the fact that the vendors had promised us that they would reject any other offers.

However, I have the vendor's telephone number... I am just wondering if and how we should use it.

What would you do in my situation?

[Deleted User]

Could it be that the other couple saw the house BEFORE it was taken off the market?

The vendor seems to be aware that they had a deal with you and hopefully they'll keep their word.

Of course it could also be possible that they are bluffing and hope that you raise your offer...

Anything is possible. Stick to your guns and hopefully you won't get guzumped. You also have to decide if you're prepared to match the 'other' offer, it all depends how much you want the house.

Not a fun situation to be in, this weekend must be very long for you. Best of luck!

Martin_OB

Thank you.

The people who made the offer viewed the house today - during the time the bid was accepted. We had hoped that the vendor would have refused the viewers entry (this is what they promised last night).

The Estate Agent did not call me to inform me of the improved offer. However, I called them (shortly after I received the news from the vendor) and they confirmed that another offer had been received today.

You're right...it is a horrible situation to be in.

McAzrael

I know it's not good, but try to remember that you have spent just a few hours and no money so far on this deal. Stick to your offer. If you do get gazumped, all you can do is chalk it up to experience and be thankful that it happened early.

As a side note, if the vendor has an agent (as in this case) try to deal with the agent. It's what they are paid for and things get less emotional.

GabbaGabbaHey

Martin_OB wrote:

I have learnt so much from this website and this forum - but if anyone of you could tell me how I can make this situation better, I would be eternally grateful.

Sorry, but that's how the housing market works. At the end of the day, three thousand pounds is three thousand pounds - I must admit that if I was the seller, I would take the higher offer.

Just be glad that you haven't paid out money for a survey, solicitor's fees, searches, etc yet.

Gorgeous_George

Keep looking.

There are thousands of houses for sale every day in the UK and you will find another one that meets your needs very soon I'm sure.

The deal was struck at £142K. Do not revise it higher. Walk away if necessary. At least you haven't lost money like so many people who are gazumped.

House buying in England is crazy.



GG

dfarry

Yup thats right... its the way it is and there is nothing you can do.... and handshakes, smiles and even paper work count for nothing until exchange of contracts.....

I know how you feel but this may be a good thing....

I am waiting to hear any day that I've been gazumped - http://forums.moneysavingexpert.com/showthread.html?p=2961516#post2961516

pawpurrs

Heartfelt feelings.
Why did the vendor accept the other viewings, if she said she wouldnt? If she is prepared to do this now, then maybe she will do it again, if someone elses offers, and when you have spent more money on the deal.
After all someone who has viewed previously may decide to offer. Perhaps some one who wasnt in a postion to proceed before.
Perhaps its better to walk away, but it depends on how much you WANT that house, and only you can answer that.
Whatever you do dont phone the vendor, leave it to the ea, too emotional a time, and you could damage the situation.

BT_man

GabbaGabbaHey wrote:

Just be glad that you haven't paid out money for a survey, solicitor's fees, searches, etc yet.

Exactly what I was thinking..:beer:

brasso

I hate hearing this sort of story.

I'm in the process of selling a flat near Leeds. I received an offer £2K under the asking price, which I accepted. A few days later the agent told me that another buyer would be prepared to offer the asking price, but I said no.

Yes, of course I would like the extra £2k -- who wouldn't? But I feel obliged to stick to the original agreement.

Do as you would be done by. It's the only rule to live by.

In the OP's position, I would NOT raise my offer. I'd be tempted to write the agent and the vendor a very snotty letter HOWEVER it is not uncommon in this situation for the higher offer to fall through, and the vendor to come crawling back -- so it might be best not to burn your bridges.

Of course, there would be a great temptation to increase the offer beyond the higher one, and then to pull out of the deal in 2 weeks time.

But that would really be TOO naughty....

Gorgeous_George

brasso wrote:

Of course, there would be a great temptation to increase the offer beyond the higher one, and then to pull out of the deal in 2 weeks time.

But that would really be TOO naughty....

... but nice!

Maybe this would make people think twice before going back on a handshake. However, you have to remember any other people in the chain.

I'd still do it.



GG